By: David C. Smith, Senior Director of Occupier Research, Americas
Recently, co-working has been all over the Atlanta news. Serendipity Labs announced it will open a 26,000-square-foot space in Buckhead in the spring of 2018. Regus will redevelop and rebrand its Colony Square location with its “Spaces” brand. And, WeWork is in the construction phase preparing for the opening of its most recent space this Friday at 1372 Peachtree in Midtown.
Co-working is a fast growing part of the commercial real estate world. This past summer, Cushman & Wakefield Research identified 28 million square feet (msf) of co-working spaces available in tracked markets across the United States. Nearly three-fourths of this space is managed by either Regus (43 percent) or WeWork (29 percent). The two industry leaders account for well over 800 locations nationwide.
In Atlanta, there is already more than 1.1 msf of co-working space even before the aforementioned locations come online. This makes it the fifth largest co-working market in the United States behind Manhattan, Los Angeles, Chicago, and San Francisco. As it is in so many other ways, Atlanta is the Southeastern leader in co-working space. It has more than twice as much space as any other market in the Southeast. The only other cities with at least 200,000 square feet of co-working space are Miami, Charlotte, Nashville, and Ft. Lauderdale.
Co-working space will continue to be a popular option for tenants of all sizes in a variety of industries as providers continue to become more sophisticated to adapt to want tenants want.